Final answer:
The process of dividing work into separate tasks to increase productivity and efficiency is known as division of labor. It allows for specialization, skill development, and increased efficiency. A real-world example of division of labor can be seen in a restaurant where different roles focus on specific tasks.
Step-by-step explanation:
The process of dividing work into separate tasks to increase productivity and efficiency is known as division of labor. This concept was observed by economist Adam Smith in his observations of pin factories. When workers specialize in certain tasks, they become more skilled and efficient, leading to increased production.
For example, in a restaurant, there are different roles such as top chef, sous chefs, kitchen help, servers, greeter, janitors, and business manager. Each person focuses on their specific task, which allows the restaurant to serve meals more efficiently.
Overall, division of labor allows for specialization, skill development, and increased efficiency, resulting in higher productivity and output.